In the employment context, an arbitration agreement is a contract between an employer and an employee in which the parties agree to resolve disputes in front of an arbitrator rather than in civil court. These agreements are often standard in new hire paperwork. Employers like arbitration because it is considered to be more efficient and… Read More
Posts Tagged With: unconscionability
One Day, Two Opposite Results in Arbitration Cases
On the same day, two different California appellate courts reached opposite conclusions as to whether an employer’s arbitration agreement was enforceable or not. Subcontracting Concepts v. DeMelo — Arbitration Agreement Void and Unenforceable In one case, Subcontracting Concepts, LLC v. DeMelo, the Court found that the arbitration agreement was both procedurally and substantively unconscionable and, therefore, unenforceable…. Read More
U.S. Supreme Court Agrees to Determine Legality of Class Action Waivers in Employee Arbitration Agreements
Yesterday, the U.S. Supreme Court agreed to decide whether class action waivers in employee arbitration agreements violate federal law. This is a huge development, with potentially far-reaching implications for many California employers. But, first, a little background (okay, actually it’s a lot of background, but it’s important) — Advantages of Arbitration Many employers require their… Read More
